> For the complete documentation index, see [llms.txt](https://kb.logicerp.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kb.logicerp.com/logic-erp-version-release-notes/january-2026/order-processing/sale-order-tax-calculation-incl-excl.md).

# Sale Order - Tax Calculation (INCL/EXCL)

Logic ERP has rolled out a new update to make tax calculations easier and more flexible. You can now apply both Inclusive and Exclusive tax methods directly in the Sales Order, ensuring accurate pricing and seamless billing operations.

***

### Step 1: Set Tax Configuration (INCL)

* Navigate to Sale Order Configuration and open Calculation Mode.
* Select "**Tax 2"** and set calculation type as **"Item Wise (INCL)**"

<figure><img src="https://4031188996-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXMVkjt8zqHBQX1c9QvFS%2Fuploads%2F9Mv17QRclkX3TBWJAMvC%2FTax%202%20-%20Calculation.png?alt=media&amp;token=acd69234-a9fe-4067-b906-d7afbcb0ee67" alt=""><figcaption></figcaption></figure>

* For **Tax 1**, set **Calculation Position** for percentage fields to **Position 5** (counting all fields up to Tax 2).
* Set **Calculation Method** to **Plus (+)**.
* Set **Calculation Type** to **Default**.

<figure><img src="https://4031188996-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXMVkjt8zqHBQX1c9QvFS%2Fuploads%2FF3HiRvpeKhX37XpdoyuJ%2FTax%201%20-%20Calculation.png?alt=media&amp;token=0f031036-796b-4767-8b71-bb2fd055ff72" alt=""><figcaption></figcaption></figure>

* For Tax 3, apply the same calculation settings that were configured for Tax 1 to ensure consistency in tax calculation.

***

### Step 2: Implement in Sale Order

* Navigate to the **Sales Order** module.
* Fill in all the **required details**.
* Enter the **item details**.
* Click on the **Other Details** section.
* You will see that **Inclusive Tax** has been applied automatically.

<figure><img src="https://4031188996-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXMVkjt8zqHBQX1c9QvFS%2Fuploads%2FbObUsCU9ESk2MzlGRG5J%2FIncl%20Calculation.png?alt=media&amp;token=e10645b2-a0d5-4e79-a6a5-188e79016da6" alt=""><figcaption></figcaption></figure>

For more detailed information, [<mark style="color:green;">click here</mark>](/logic-erp-learning-hub-tutorials-and-best-practices/order-processing/sale-order/set-inclusive-tax-calculation-for-sales-orders.md)<mark style="color:green;">.</mark>


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